engleski

The relationship among private, public and external debt- panel dana analyses for CEE countres

The paper analyzes relationships among public, private and external debt. This analysis is theoretical, but also applied to the selected Eastern European countries (EEC), with the special emphasis on Croatian situation. It also intends to set the new theoretical insights and empirical analysis for resolving the risk of sovereign debt. There is no unanimity among academics about the role and meaning of public debt resulting in different ideas about the economic policy solutions. It is our hypothesis that the regulation of private debt leads to the stabilization of public debt, while the relationship between external and public debt indicates the importance of external debt. The structure and sources of public debt financing are of the primarily relevance. The prevailing of the external component of public debt leads to the primary importance of achieving the external stability (current account surplus), restoring creditworthiness and decreasing the external debt, and not only public debt in general. Without restoring external stability austerity measures would be harder to achieve. Our results should indicate the direction of activities of macroeconomic policy.

private ddebt, public debt, external debt, panel analisis, relations among debts

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